head pig enterprises released their first annual report, and suffered huge losses of more than 13 billion yuan under cyclical pressure
On April 15, Wens Foodstuff Group Co.Ltd(300498) took the lead in disclosing the annual report among pork breeding companies. Last year, the operating revenue was 64.954 billion yuan, a year-on-year decrease of 13.31%; The net loss attributable to shareholders of listed companies was 13.404 billion yuan, and the net loss attributable to shareholders of listed companies after deducting non recurring profits and losses was 14.666 billion yuan. The company lost 2.11 yuan per share last year.
Wens Foodstuff Group Co.Ltd(300498) becomes a mirror of A-share pig company. Under the pressure of performance, the cash flow of some pig breeding companies or controlling shareholders began to be tested. On the 15th, Jiangxi Zhengbang Technology Co.Ltd(002157) announced that some shares of the company held by the controlling shareholder Zhengbang group were subject to judicial freezing and judicial re freezing, reflecting certain short-term debt repayment pressure.
1. Deep loss of pig breeding
In the announcement of the annual report, Wens Foodstuff Group Co.Ltd(300498) said that during the reporting period, the average selling price of the company's pigs was 17.39 yuan / kg, a year-on-year decrease of 48.18%, and the price fell sharply. At the same time, due to the continuous rise in the price of feed raw materials, the fattening of some pig seedlings purchased by the company and the continuous promotion of pig breeding optimization, the profit of the company's pig breeding business decreased significantly year-on-year, and the pig breeding business suffered a deep loss.
Relatively speaking, the production performance of poultry industry is good and the overall profit is realized Wens Foodstuff Group Co.Ltd(300498) said that the average selling price of wool chicken was 13.20 yuan / kg, a year-on-year increase of 13.50%, and the overall market situation of broiler chicken has improved. Although the continuous rise in the price of feed raw materials has raised the breeding cost, the production performance of the company's chicken industry has maintained the company's historical high level for many consecutive months and achieved overall profitability Wens Foodstuff Group Co.Ltd(300498) stressed that the profit of the company's chicken business only made up for the loss of the pig business.
in the annual report, Wens Foodstuff Group Co.Ltd(300498) Zhichen, in 2021, the company is facing unprecedented operating pressure
This pressure is manifested in many aspects. Affected by the covid-19 epidemic, the aggregate consumption of hotels, canteens and group meals continues to be depressed, and the total demand for livestock and poultry products decreases. Affected by the expansion of livestock and poultry production capacity in the previous two years, the product supply increases, the overall imbalance between supply and demand, the supply is loose, the demand is sluggish, and the sales price drops rapidly from the high level and runs low for a long time; In addition, the rising price of feed raw materials, the fattening of some pig seedlings purchased by the company and the continuous promotion of pig breeding optimization have led to high breeding costs.
However, Wens Foodstuff Group Co.Ltd(300498) also stressed that the main pig industry is getting back on track.
During the reporting period, Wens Foodstuff Group Co.Ltd(300498) sold 1.101 billion broilers, a year-on-year increase of 4.76%; 132174 million pigs were sold, with a year-on-year increase of 38.47%, exceeding the target set at the beginning of the year; 579789 million meat ducks were sold; 35000 tons of eggs and 102100 tons of raw milk were sold. If the sales volume of broilers, pigs and ducks are converted into sales weight respectively, the total weight of broilers, pigs and ducks sold by the company during the reporting period is 3.9781 million tons, a year-on-year increase of 16.65%. In the context of the impact of the double epidemic, it is particularly difficult to achieve these achievements, especially the pig industry has gradually stepped out of the production dilemma and returned to the right track of production.
Wens Foodstuff Group Co.Ltd(300498) gives its own judgment on which stage of the breeding industry is in the cycle.
Wens Foodstuff Group Co.Ltd(300498) believes that the time for the pig industry to enter the bottom of the cycle is short, and the market situation remains depressed. "After January 2021, the pig price began to enter the unilateral downward stage. In October, the pig price hit a new low and began to decline again by the end of the reporting period. At present, it is still at the bottom of the cycle."
For the poultry industry, Wens Foodstuff Group Co.Ltd(300498) believes that it is in the shock stage at the bottom of the cycle. "In 2020, the price of broilers continued to decline. Until the end of the reporting period, the price of broilers was still in the shock stage at the bottom of the cycle. Due to the continuous downturn of broiler prices, the output of broilers may continue to decline."
This judgment may be reflected in the performance forecast of another A-share company Shandong Minhe Animal Husbandry Co.Ltd(002234) once said on April 13 that it expected a loss of 170 million yuan to 200 million yuan in the first quarter. At that time, the company made it clear that the market of white feather broiler was poor, and the sales price of commercial substitute chicken seedlings of the company's main product was low, with a significant decrease year-on-year; The price of feed raw materials such as soybean meal increased greatly, and the cost of chicken seedlings and chicken increased.
Under the weak cycle, Wens Foodstuff Group Co.Ltd(300498) chose the "conservative strategy". On the same day, the company announced that it would use its own funds of no more than 7 billion yuan for entrusted financial management in 2022 without affecting its normal operation and ensuring the safety and liquidity of funds.
2. Be alert to cash flow pressure
Judging from the current signs, Wens Foodstuff Group Co.Ltd(300498) is not the biggest loss among the pig leaders this year.
the other four major pig enterprises New Hope Liuhe Co.Ltd(000876) , Muyuan Foods Co.Ltd(002714) , Tech-Bank Food Co.Ltd(002124) , Jiangxi Zhengbang Technology Co.Ltd(002157) have not released the financial reports for 2021, but the performance of the four companies is expected to decline significantly. Among them, New Hope Liuhe Co.Ltd(000876) is expected to lose 8.6 billion yuan to 9.6 billion yuan, with a profit of 4.944 billion yuan in the same period of last year Muyuan Foods Co.Ltd(002714) expected profit of 6.5 billion yuan to 8 billion yuan, a year-on-year decrease of 70.86% to 76.32% Tech-Bank Food Co.Ltd(002124) expected loss of 3.5 billion yuan to 4 billion yuan, with a profit of 3.24 billion yuan in the same period of last year Jiangxi Zhengbang Technology Co.Ltd(002157) expected loss of 18.2 billion yuan to 19.7 billion yuan, with a profit of 5.744 billion yuan in the same period last year
The performance of pig companies is under pressure, and the cash flow of some companies or controlling shareholders is tested. On the 15th, Jiangxi Zhengbang Technology Co.Ltd(002157) announced that some shares of the company held by the controlling shareholder Zhengbang group were subject to judicial freezing and judicial re freezing. The frozen shares accounted for 1.57% of the shares held by Zhengbang group and 0.37% of the total share capital of the company. In the view of the market, this reflects that Zhengbang group is facing greater short-term debt repayment pressure.
Wens Foodstuff Group Co.Ltd(300498) in the annual report, it is also clear that the development rhythm needs to be reasonably controlled to ensure the stability and safety of operating cash flow. The company said that since January 2021, the price of live pigs has fallen rapidly from about 36 yuan / kg to less than 10 yuan / kg. In order to ensure the safety of the company's operating cash flow, the company resolutely suspended the production capacity of new pig breeding farms, shifted the focus of work to making good use of the existing production capacity to promote the pig industry to reach full production, re verified the use of funds in various business sectors and lived within the limits of income.
At the same time, actively expand financing channels and prepare funds for the "winter".
3. Beishang capital increased its position against the trend
At the moment when the pig breeding leader suffered a performance Waterloo, the capital went north to increase its position against the trend. The annual report shows that in the fourth quarter of last year, nearly 40 million shares of Wens Foodstuff Group Co.Ltd(300498) , and the proportion of circulating shares has risen to 3.17%.
The layout confidence of "smart capital" may come from the expectation of the future.
At present, despite the severe winter, the leader has done a good job in expectation management Wens Foodstuff Group Co.Ltd(300498) said that in 2022, the sales target of the company's pigs (including hairy pigs and fresh products) was about 18 million, and the sales target of broilers (including hairy chickens, fresh products and cooked foods) was about 5% year-on-year increase. Among them, the sales volume of wool chicken remains stable, and the growth potential of broiler sales is mainly the varieties suitable for slaughter. The company will make plans for introduction, breeding, seedling investment and listing according to the sales objectives and market conditions. At the same time, continue to promote other related businesses to expand the market, ensure that the annual plan target is exceeded, and strive to control the comprehensive cost target of pigs at 8-8.5 yuan / kg in 2022.
From the sales volume of the five major pig enterprises in March, they also increased month on month. According to the pig sales briefing in March 2022 disclosed by the five major pig enterprises, the sales volume increased month on month, and the average sales price of some companies increased. Taking New Hope Liuhe Co.Ltd(000876) as an example, the company recently disclosed that it sold 1426900 pigs, with a month on month change of 46.00% and a year-on-year change of 67.10%; The revenue was 1.694 billion yuan, with a month on month change of 53.58% and a year-on-year change of - 22.33%; The average selling price of commercial pigs was 11.64 yuan / kg, with a month on month change of 2.19% and a year-on-year change of - 50.47%.
